Cryptos Upbeat, Dogecoin Likes Elon Musk’s Twitter Stake
Elon Musk Buys Twitter Stocks
A filing with the US Securities and Exchange Commission (SEC) yesterday, revealed that Elon Musk owns a 9.2% stake in social networking firm Twitter [1], which caused its stock (TWTR.us) to post an around 27% rally yesterday. Earlier today, he threw his weight around, asking his followers to vote on whether the app should have an edit button. [2]
The news come just a few days after mr Musk had criticized Twitter for "failing to adhere to free speech principles" and had asked his followers on the platform "what should be done" [3], with some suggesting that he should buy the company and others urging him to create his own social media platform.
Another user had suggested that if the Tesla (TSLA) CEO did either of that, there would be a Dogecoin tip jar, something that Mr Musk seemed to like, based on his reply. [4]
Dogecoin Helped by Musk's Twitter Stake
As we had written last week, the CEO of EV king Tesla (TSLA) has over 80 million followers on Twitter and is quite outspoken on the platform, often commenting on Cryptocurrencies and Dogecoin.
After the news of Mr Musk's stake on Twitter, DOGE/USD spiked to nearly two-month highs (0.1572) and today it posts profits of around 3%, trading below that level. As long as it stays above 38.2% Fibonacci of the 2022 High/Low slide, it has the ability to register higher highs an push for the 0.1740 handle.
Last week however, it had rejected the 38.2% level and this creates risk for renewed pressure, but a strong catalyst would be needed for a breach of 0.1251.
Regulatory Tightening
The crypto world is facing a tightening regulatory environment in the US and elsewhere, with President Biden having signed last month an executive order on ensuring responsible innovation in digital assets, including cryptocurrencies.
The regulation aims to address the risks and harness the potential benefits of digital assets and their underlying technology, laying out a six key priorities: consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation.
Yesterday, the head of the US Securities and Exchange Commission (SEC) pushed for increased oversight over cryptocurrencies, saying that "we have robust ways to protect investors trading on platforms" and that "We ought to apply these same protections in the crypto markets". Mr Gensler also noted in his remarks that Cryptos make a roughly $2 trillion market. [6]
Cryptocurrencies have been rising to prominence, with Gemini's 2022 Global State of Crypto Report, characterizing 2021 as the "breakout year", since 41% of crypto owners surveyed globally purchased crypto for the first time in 2021, while ownership nearly doubled in the US last year. [7]
Apart from Doge's Musk/Twitter-fueled rise, cryptocurrencies are mostly upbeat today despite regulatory news, with FXCM's CryptoMajor Basket gaining more that 0.5% today, having entered its third straight profitable month.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 05 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/f66f56c1-eb52-43f8-a7ff-992dc80a7396.pdf | |
| Retrieved 05 Apr 2022 https://twitter.com/elonmusk/status/1511143607385874434 | |
| Retrieved 05 Apr 2022 https://twitter.com/elonmusk/status/1507777261654605828 | |
| Retrieved 05 Apr 2022 https://twitter.com/elonmusk/status/1507923524442222592 | |
| Retrieved 05 Apr 2022 https://www.sec.gov/news/speech/gensler-remarks-crypto-markets-040422 | |
| Retrieved 12 May 2024 https://www.gemini.com/gemini-2022-state-of-crypto-global.pdf |
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